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USDA economists pegged the 2018 all-milk price at $16.05 per hundredweight, down $1.20 from November's projection. Class III futures for March through August averaged $14.40, and heifer inventories rose to 4.78 million head, the second largest since 1962.
A lower forecast milk price and surging heifer numbers point to weaker dairy margins and potentially larger future milk supply, which is bearish for dairy demand for feed.
hoards.comCorey GeigerFeb 25, 2018After 273 past bearish report events, Milk (Class III) moved a median -0.2% over 5 sessions (39% higher; middle half -1.3% to +0.4%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
